Tullow Oil said today it is buying some North Sea gas production assets from Royal Dutch/Shell Group and ExxonMobil Corp for £200 million sterling.
The deal covers all Shell's and ExxonMobil's producing interests in the Schooner and Ketch gas fields and surrounding acreage.
Tullow said it will finance the purchase through bank debt and internal resources. The deal is inclusive of capital allowances, with an effective date of July 1st, 2004.
Tullow said it plans to increase production levels substantially.
The company holds interests in more than 90 licences in 16 countries.
When posting first-half results on September 13th, Chief executive Mr Aidan Heavey said acquisitions were part of Tullow's strategy. "We would look at two main areas, in the UK southern gas basin, and anywhere in Africa," he said at the time.
Tullow Oil shares closed at €2.12 on Friday to value the business at €1.36 billion.